Bad economy these days?
well, any investor will say that this is the best time to invest ...
and most people will probably buy landed properties like apartments, condominiums and so on, which i will blog about in the next few post in the future ...
today i will giving a different idea of investment in terms of franchising ...
there are many things that we can franchise, but the one popular idea that everyone would like to franchise i guess would be McDonalds ~ ...
So how do we do it or go about it?
I have done some research on it and even contacted them ...
most of the main details can be found on their website ...
http://www.mcdonalds.com.my/index.aspbut i've found out something extra ...
here is the breakdown ...
Picture taken from their official website ~ ...
Facts and figures taken from their website as shown above ...
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There are two ways to become a McDonald's franchisee - start a new restaurant from scratch or buy an existing McDonald's restaurant.
Either way, you need to fulfill certain financial requirements to be a McDonald's franchisee.
(1) NEW RESTAURANTSThe costs for starting an entirely new McDonald's restaurant can be anything between RM1.5 million to RM3.5 million. The costs also depend on the restaurant size and type, its location, style of décor and landscaping.
Initial Costs
(A) USD 45,000 (approximately RM171,000, subject to prevailing exchange rate)Franchise fee paid upon or prior to the commencement of the franchise.
(B) RM45,000 - RM70,000Interest-free security deposit for the faithful performance of the franchise (approximately 2 months' deposit for service fee, royalty and marketing contribution or 3 months' rental deposit), refundable upon the expiration of the franchise.
(C) RM200,000 - RM250,000Pre-opening expenses - Staff training and salaries, stock trading, living expenses while training and other normal start-up costs.
(D) RM900,000Approximate cost of kitchen equipment, signage, seating, decor and landscaping paid to individual suppliers.
(E) RM600,000 to RM2 million[depending on store type (Drive Thru, Mall, Oil Alliance or Shop Front)]Approximate cost of all civil works, ventilation system and renovations to the premises paid to individual contractors (Applicable for Developmental Franchise Only).
(F) Other Miscellaneous CostsStamp duty (paid to the government) is assessed on necessary documentation and is paid by the franchisee in addition to the working capital required.
Legal fees are paid by the franchisee to cover the preparation of the franchise documentation
Ongoing Fees (Monthly)
Royalty FeeA Royalty Fee, which is a system fee, is based on a percentage of the restaurant's gross sales, which is currently at 5%.
Service FeeFor a developmental license (whereby the capital investment is solely borne by the franchisee), a monthly service fee is charged based on a percentage of the restaurant's gross sales. This is currently set at no less than 5% of the gross sales.
For a conventional license (whereby the capital investment is shared between McDonald's and the Franchisee), a monthly rental, being a fixed base rent and/or a percentage of the gross sales, is determined by the total development cost of the restaurant.
Marketing ContributionCurrently at 5% of the restaurant's gross sales.
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2) EXISTING RESTAURANTS
If you choose to buy an existing McDonald’s restaurant business instead, you will usually buy it over based on the restaurant's market value. In addition, the franchise fee and security deposit aforementioned will also be payable.
Note: All matters mentioned in relation to an individual making an application and qualifying for a McDonald's franchise also apply to the situation where it is proposed that an existing restaurant business is purchased.
FURTHER NOTES:
1. The costs stated above are only estimates and may change without prior notice.
2. As a general guide, no less than 30% of the initial costs must be funded from non-borrowed personal resources.
3. Term of Franchise: 20 years or length of lease of premises.
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ok, so roughly RM1.5 to 3 million is needed ~ ...
if you are thinking about just franchising the dessert section only, the answer would be no you cant ~ ...
they do not seperate it, once you franchised it, it will be the whole package ~ ...
there is a 1 year training for you too if you are selected ~ ...
not exactly that easy ~ ...
and there is the term of franchise of 20 years ~ ...
after which, your site would be re-evaluated to see if you meet their expansion criteria ~ ...
all hard work ~ ...
bottomline, i supposed if you do have that much of cash, you could consider, but getting a positive balance sheet will take some time and hard work ~ ...
do correct me if any of my facts were wrong ~ ...
but hey, its always cool to say that you have your own McDonalds ~ ...
thats it for now ~ ...
so getting ready to eat ~! ...
everyone hungry ~ ... 
Lavender Original Vinegar RM15
Steam Meat RM15
Baked Rice Roll Stuffed RM32
Green Tea sauce and Red BeanRm 14 
Green Tea sauce and Red Bean Rm14
Mixed seafood RM65
Stirring the food ~ ...
Drinking vinegar ~ ... does not taste so nice ~ ... 
but a bit of it is ok ~ ...
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